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As stated in the notification, the taxable value of the property, on the basis of which the taxes payable are calculated, is usually the average market value of a specific property, which the Center of Records recalculates each year through mass valuation. However, the tax value is equated to the average market value at least every 5 years. It should be noted that the tax value of the real estate in individual cases can also be the market value of the real estate determined by the individual property valuation method.
For example, currently the relevant tax values for buildings (apartments, residential houses, commercial premises) were determined in 2016, that is, as of January 1, 2021. will be updated, that is, equal to the current average market values . Thus, this year residents have to pay the property tax for properties managed according to the 2016 tax values, but next year the tax will have to be paid according to the updated tax values of 2021.
How to know the tax value of your property?
The easiest way to find out the tax value of your managed real estate is to use the free search on the Records Center website at www.registrucentras.lt/masvert/paieska-un. A unique property number is required for the search, it can also be found on the website of the Registry Center https://www.registrucentras.lt/ntr/p/.
Currently, the search shows the current value of the real estate tax; this is exactly what the STI should use when submitting real estate tax returns for 2020. To find out what tax value for apartments, houses or other structures will need to be reported in the next few years, when the updated tax values will be valid, property owners Real estate can consult the mass market value search at https://www.registrucentras.lt/masvert/paieska-obj for the estimated average market values of the appraised real estate objects, which will take effect from next year. The search will also require a unique property number.
The property tax is not paid separately for each real estate object, but by adding and valuing all the assets that belong to a person. Extracts of the average market or tax value determined by mass valuation are provided to the owners in the self-service Registry Center. Property owners can also find out the value of the tax by visiting the Customer Service Department of the Registry Center and completing the application. At the request of individuals, declarations of the corresponding tax value will be prepared and delivered free of charge once during the tax period.
In cases where the tax values of common property real estate need to be determined, a marriage certificate must be presented. To know the tax values of real property owned by a spouse or other owner, a power of attorney must be presented.
For some real estate objects, such as engineering structures, the tax value is calculated using the cost method, therefore, the Registry Center calculates and recalculates it only by requesting the Registry Center’s customer service department, filling out the application. and paying for value conversion work. The tax value calculated using the cost method is valid for 5 years, but the applicant can submit a request to recalculate the tax value more frequently.
Who is entitled to pay real estate tax?
According to the STI, this year the same property tax rates are applied as last year, but the limit free of real estate taxes has changed: last year it was 220 thousand. EUR, and this year – 150 thousand. euros. For those raising three or more (adopted) children under the age of 18, and to raise a disabled (adopted) child under the age of 18, as well as an older (adopted) disabled child who has a special need for permanent care , the exemption threshold for real estate tax is higher – 200 thousand. euros.
Real estate tax applies to residential, garden, garage, farm, greenhouse, farm, auxiliary, scientific, religious, recreational (local), fishing, and engineering structures buildings (or parts thereof property) owned by residents, located on the territory of Lithuania. that are not classified as exempt real property.
Residents must declare and pay real estate tax annually before December 15 of the current year. According to preliminary STI data, for 2020. During the tax period, real estate tax returns will need to be filed for around 19 thousand. population and is estimated to be around 7.1 million. Amount to pay in euros.
In the case of parcels of land, the tax values calculated by the Registry Center are used only as a basis for calculating a specific tax amount. These values are delivered to the STI, which annually determines the specific amounts to be paid to each owner.
How are tax values determined?
Every year, the Registry Center recalculates the average market values of real estate objects by conducting a massive valuation of real estate throughout the country. These values will be equated to tax values at least every five years. Tax values for buildings were last determined and are valid from 2016. as of January 1, 2018, for land – as of 2018. January 1. Thus, the new tax values for building will come into effect as of 2021. as of January 1, 2023, and for land as of 2023. January 1.
The mass valuation uses the data of purchase and sale transactions accumulated in the databases of the Records Center and evaluates the set of similar real estate objects. Its determined average market value is based on the data of the real estate transactions that have actually taken place. The determination of the average market values by mass valuation takes into account the location, the purpose of use, the physical properties of the real estate object, but the form of management, planning, interior design and details and other individual characteristics of this object do not affect the calculated value.
The massive valuation methodology allows to evaluate a large number of real estate objects in a relatively short time, with the same principles and low costs.
Where are the average market values of properties used?
Average market values are not only used to calculate property taxes. These values are also relevant for residents, for example, in the case of inheritance or donation of real estate, the taxes to be paid are calculated on the basis of average market values. Average market values can also be used to determine the sale and rental prices of state assets.
These values are also used to address the issue of social assistance and are used to identify regions that provide a financial incentive for young families to purchase their first home. When notaries approve asset transfer transactions, their service fees are also often calculated based on average market values.
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